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The fairness of inequality due to risk and effort choices

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2022

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Discussion Papers of the Max Planck Institute for Research on Collective Goods; 2022/5

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https://doi.org/10.2139/ssrn.4132093
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Open Access-Veröffentlichung

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Politik- und Verwaltungswissenschaft: Publikationen
Exzellenzcluster "The Politics of Inequality": Publikationen
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Zusammenfassung

Three determining factors for economic inequality are self-chosen effort, self-chosen risk, and external circumstances. The fairness people assign to inequalities due to effort and external circumstances is widely studied. Insights on the fairness of inequalities due to self-chosen effort and self-chosen risk, however, are lacking. I study a novel experimental setting where inequality is due to a choice over effort-provision and a choice over risk-taking. While the resulting inequality is mostly seen as fair, around 10% of third-party redistribution decisions are in line with a fairness norm that only considers the choice over effort.

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Fachgebiet (DDC)
320 Politik

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Inequality, Fairness, Risk-taking

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ISO 690STERBA, Maj-Britt, 2022. The fairness of inequality due to risk and effort choices
BibTex
@techreport{Sterba2022fairn-71687,
  year={2022},
  doi={10.2139/ssrn.4132093},
  series={Discussion Papers of the Max Planck Institute for Research on Collective Goods},
  title={The fairness of inequality due to risk and effort choices},
  number={2022/5},
  author={Sterba, Maj-Britt}
}
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